Shares US based neobroker Robinhood (NASDAQ:HOOD) were soaring in premarket trading on Wednesday, after the company reported better-than-expected results for Q4 and full year 2023.
Robinhood actually turned in only its second profitable quarter ever in Q4 (the other being Q2 2023), with net income of $30 million. For the full year 2023 Robinhood posted a net loss of $487 million. But again, the company seems to be heading in the right direction, favoring profitability over growth-at-all-costs which characterized the first few years of its existence.
On the Revenue side of things, Robinhood saw Q4-2023 Revenues of $471 million, up slightly from $467 million in Q3. For the full year 2023 Revenues at Robinhood came in at $1.87 billion, up 37% year-over-year.
Robinhood shares reacted by trading up in the premarket, sitting at $13.63 as of the time of writing, up 15% from Tuesday’s closing price of $11.84.
Robinhood share price, past 12 months. Source: Google Finance.
Robinhood’s Revenues were certainly helped by the higher interest rate environment, with Net Interest Revenues of $236 up 41% YoY, and thus comprising more than 50% of the company’s overall Revenues.
But Transaction-based Revenues also increased 8% year-over-year in Q4 to $200 million, primarily driven by crypto revenue of $43 million (up 10%), equities revenue of $25 million (up 19%), partially offset by soft options revenue of $121 million (down 2%).
Robinhood once again mentioned international expansion in its results release, although not as prominently as after Q3. The company said that building on early progress following the Robinhood UK brokerage waitlist launch and the EU crypto launch, Robinhood plans to explore opportunities to continue growing its customer base outside the US. We had reported earlier this month that Robinhood was expanding in Canada, although it has yet to formalize plans to offer services to Canadian traders and investors.
Vlad Tenev, CEO and Co-Founder of Robinhood said of the results,
“2023 was a strong year as our product velocity continued to accelerate, our trading market share increased, and we started to expand globally. And we’re off to an even better start in 2024, as we’ve already brought in more Funded Customers and Net Deposits through the first half of Q1 than we did in all of Q4 2023.”
Robinhood’s full results release for Q4 and full year 2023 can be seen here.
